Intel to invest $88bn in Europe

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Intel is to invest $88 billion in Europe over the next decade with Germany seeing a new fab site and the company’s Irish fab site to be expanded.

Intel’s investment drive across Europe is intended to cut its reliance on imports and address supply constraints which have been impacting manufacturers and it is the latest big investment announcement by a semiconductor maker as the industry attempts to address the current boom in demand for chips.

The investments are being spread around Europe with half a dozen countries benefitting.

Alongside the new fab in Germany and the expansion of its Irish fab site, it is also considering a possible packaging plant in Italy. An R&D centre in France and additional space at its facilities in Poland have been confirmed.

The German fab site, which will be located at Magdeburg, will be capable of 2nm processing while Intel’s Irish site will see manufacturing capacity doubled.

Germany is being seen as the big winner from this announcement and is set to receive the bulk of Intel's investment. However, Intel’s CEO Pat Gelsinger has declined to say how much state aid the company is getting.

Intel said that it was in ongoing negotiations with Italy about a possible packaging plant, while in France an R&D centre for HPC and AI will be set up. In Poland, Intel will expand its Gdansk lab space by 50% to work on deep neural networks.

“Today 80% of chips are produced in Asia,” said Intel CEO Pat Gelsinger, “our pan European investment addresses the global need for a more balanced and resilient supply chain. We are planning to bring the most advanced technology to Europe and helping EU create the a next-generation European chip ecosystem.”

“Europe will be a key player across the entire chips value chain, including in the fast-moving market of cutting-edge technologies below 2nm chips produced in Europe,” said EU Commissioner Thierry Breton.

Intel's announcement comes after the European Commission set out plans to encourage chip manufacturing in the European Union, with proposed new legislation to ease state aid rules for chip factories as well as enabling $17bn in additional public and private investment.